UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2025

or


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From To

Commission File Number: 000-30421

HANMI FINANCIAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)


Delaware		95-4788120
(State or Other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification No.)


900 Wilshire Boulevard, Suite 1250
Los Angeles, California		90017
(Address of Principal Executive Offices)		(Zip Code)

(213) 382-2200

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report)

Securities Registered Pursuant to Section 12(b) of the Act:

     Title of each class

     Trading
Symbol(s)

     Name of each exchange on which registered

     Common Stock, $0.001 par value

     HAFC

     Nasdaq Global Select Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of July 30, 2025, there were 30,126,029 outstanding shares of the Registrant’s Common Stock.

Hanmi Financial Corporation and Subsidiaries Quarterly Report on Form 10-Q

Three Months Ended June 30, 2025

Table of Contents


	Part I – Financial Information

Item 1.	Financial Statements	3

	Consolidated Balance Sheets at June 30, 2025 (unaudited) and December 31, 2024	3

	Consolidated Statements of Income for the three and six months ended June 30, 2025 and 2024 (unaudited)	4

	Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024 (unaudited)	5

	Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2025 and 2024 (unaudited)	6

	Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (unaudited)	8

	Notes to Consolidated Financial Statements (unaudited)	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	65

Item 4.	Controls and Procedures	65

	Part II – Other Information

Item 1.	Legal Proceedings	66

Item 1A.	Risk Factors	66

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	66

Item 3.	Defaults Upon Senior Securities	66

Item 4.	Mine Safety Disclosures	66

Item 5.	Other Information	67

Item 6.	Exhibits	68

Signatures		69

Part I — Financial Information

Item 1. Financial Statements

Hanmi Financial Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share data)


	June 30,			December 31,
	2025			2024
	(Unaudited)
Assets
Cash and due from banks	$	380,050		$	304,800
Securities available for sale, at fair value (amortized cost of $994,611 and $1,004,563 as of June 30, 2025 and December 31, 2024, respectively)		918,094			905,798
Loans held for sale, at the lower of cost or fair value		49,611			8,579
Loans receivable, net of allowance for credit losses of $66,756 and $70,147 as of June 30, 2025 and December 31, 2024, respectively		6,239,201			6,181,230
Accrued interest receivable		23,749			22,937
Premises and equipment, net		20,607			21,404
Customers' liability on acceptances		214			1,226
Servicing assets		6,420			6,457
Goodwill and other intangible assets, net		11,031			11,031
Federal Home Loan Bank ("FHLB") stock, at cost		16,385			16,385
Income tax assets		39,550			44,901
Bank-owned life insurance		56,985			57,168
Prepaid expenses and other assets		100,466			96,009
Total assets	$	7,862,363		$	7,677,925

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,105,369		$	2,096,634
Interest-bearing		4,623,753			4,339,142
Total deposits		6,729,122			6,435,776
Accrued interest payable		30,567			34,824
Bank's liability on acceptances		214			1,226
Borrowings		127,500			262,500
Subordinated debentures		130,960			130,638
Accrued expenses and other liabilities		81,166			80,787
Total liabilities		7,099,529			6,945,751
Stockholders’ equity:
Preferred stock, $0.001 par value; authorized 10,000,000 shares; no shares issued as of June 30, 2025 and December 31, 2024		—			—
Common stock, $0.001 par value; authorized 62,500,000 shares; issued 34,294,037 shares (30,176,568 shares outstanding) and 34,151,464 shares (30,195,999 shares outstanding) as of June 30, 2025 and December 31, 2024, respectively		34			34
Additional paid-in capital		592,825			591,069
Accumulated other comprehensive loss, net of tax benefit of $22,092 and $28,576 as of June 30, 2025 and December 31, 2024, respectively		(54,511	)		(70,723	)
Retained earnings		367,251			350,869
Less treasury stock; 4,117,469 shares and 3,955,465 shares as of June 30, 2025 and December 31, 2024, respectively		(142,765	)		(139,075	)
Total stockholders’ equity		762,834			732,174
Total liabilities and stockholders’ equity	$	7,862,363		$	7,677,925

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Income (Unaudited)

(in thousands, except share and per share data)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
Interest and dividend income:
Interest and fees on loans receivable	$	92,589	$	90,752	$	183,476	$	182,427
Interest on securities		6,261		5,238		12,430		10,193
Dividends on FHLB stock		354		357		714		719
Interest on deposits in other banks		2,129		2,313		3,969		4,914
Total interest and dividend income		101,333		98,660		200,589		198,253
Interest expense:
Interest on deposits		41,924		46,495		82,483		92,133
Interest on borrowings		684		1,896		2,708		3,551
Interest on subordinated debentures		1,586		1,649		3,167		3,295
Total interest expense		44,194		50,040		88,358		98,979
Net interest income before credit loss expense		57,139		48,620		112,231		99,274
Credit loss expense		7,631		961		10,352		1,188
Net interest income after credit loss expense		49,508		47,659		101,879		98,086
Noninterest income:
Service charges on deposit accounts		2,169		2,429		4,387		4,878
Trade finance and other service charges and fees		1,461		1,277		2,858		2,691
Gain on sale of Small Business Administration ("SBA") loans		2,160		1,644		4,161		3,126
Gain on sale of residential mortgage loans		—		365		175		808
Other operating income		2,281		2,342		4,215		4,287
Total noninterest income		8,071		8,057		15,796		15,790
Noninterest expense:
Salaries and employee benefits		22,069		20,434		43,041		42,019
Occupancy and equipment		4,344		4,607		8,794		9,144
Data processing		3,727		3,686		7,514		7,237
Professional fees		1,725		1,749		3,194		3,642
Supplies and communications		515		570		1,031		1,172
Advertising and promotion		798		669		1,382		1,576
Other operating expenses		3,169		3,561		6,374		6,930
Total noninterest expense		36,347		35,276		71,330		71,720
Income before tax		21,232		20,440		46,345		42,156
Income tax expense		6,115		5,989		13,556		12,541
Net income	$	15,117	$	14,451	$	32,789	$	29,615
Basic earnings per share	$	0.50	$	0.48	$	1.09	$	0.98
Diluted earnings per share	$	0.50	$	0.48	$	1.08	$	0.97
Weighted-average shares outstanding:
Basic		29,948,836		30,055,913		29,943,279		30,089,341
Diluted		30,054,456		30,133,646		30,048,704		30,166,181

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

(in thousands)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2025			2024			2025			2024

Net income	$	15,117		$	14,451		$	32,789		$	29,615
Other comprehensive income (loss), net of tax:
Unrealized gain (loss):
Unrealized holding gain (loss) on available for sale securities		7,706			(1,277	)		22,248			(6,375	)
Unrealized loss on cash flow hedges		(235	)		(746	)		(45	)		(2,953	)
Unrealized gain (loss)		7,471			(2,023	)		22,203			(9,328	)
Income tax benefit (expense) related to other comprehensive income items		(2,155	)		588			(6,339	)		2,933
Other comprehensive income (loss)		5,316			(1,435	)		15,864			(6,395	)

Reclassification adjustment for losses included in net income		248			460			493			460
Income tax benefit related to reclassification adjustment		(73	)		(135	)		(145	)		(137	)
Reclassification adjustment for losses included in net income, net of tax		175			325			348			323
Other comprehensive income (loss), net of tax		5,491			(1,110	)		16,212			(6,072	)
Total comprehensive income	$	20,608		$	13,341		$	49,001		$	23,543

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended June 30, 2025 and 2024

(in thousands, except share data)


	Common Stock - Number of Shares								Stockholders' Equity
													Accumulated
											Additional		Other						Treasury			Total
	Shares		Treasury			Shares			Common		Paid-in		Comprehensive			Retained			Stock,			Stockholders'
	Issued		Shares			Outstanding			Stock		Capital		Loss			Earnings			at Cost			Equity
Balance at April 1, 2024		33,957,284		(3,680,926	)		30,276,358		$	34	$	587,687	$	(76,890	)	$	326,526		$	(134,257	)	$	703,100
Issuance of awards pursuant to equity incentive plans, net of forfeitures		167,626		—			167,626			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		960		—			—			—			960
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(1,874	)		(1,874	)		—		—		—			—			(28	)		(28	)
Repurchase of common stock		—		(170,000	)		(170,000	)		—		—		—			—			(2,729	)		(2,729	)
Cash dividends paid (common stock, $0.25/share)		—		—			—			—		—		—			(7,585	)		—			(7,585	)
Net income		—		—			—			—		—		—			14,451			—			14,451
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(906	)		—			—			(906	)
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		(204	)		—			—			(204	)
Balance at June 30, 2024		34,124,910		(3,852,800	)		30,272,110		$	34	$	588,647	$	(78,000	)	$	333,392		$	(137,014	)	$	707,059

Balance at April 1, 2025		34,265,030		(4,031,516	)		30,233,514		$	34	$	591,942	$	(60,002	)	$	360,289		$	(140,778	)	$	751,485
Issuance of awards pursuant to equity incentive plans, net of forfeitures		29,007		—			29,007			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		883		—			—			—			883
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(15,953	)		(15,953	)		—		—		—			—			(359	)		(359	)
Repurchase of common stock		—		(70,000	)		(70,000	)		—		—		—			—			(1,628	)		(1,628	)
Cash dividends paid (common stock, $0.27/share)		—		—			—			—		—		—			(8,155	)		—			(8,155	)
Net income		—		—			—			—		—		—			15,117			—			15,117
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		5,482			—			—			5,482
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		9			—			—			9
Balance at June 30, 2025		34,294,037		(4,117,469	)		30,176,568		$	34	$	592,825	$	(54,511	)	$	367,251		$	(142,765	)	$	762,834

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Six Months Ended June 30, 2025 and 2024

(in thousands, except share data)


	Common Stock - Number of Shares								Stockholders' Equity
													Accumulated
											Additional		Other						Treasury			Total
	Shares		Treasury			Shares			Common		Paid-in		Comprehensive			Retained			Stock,			Stockholders'
	Issued		Shares			Outstanding			Stock		Capital		Loss			Earnings			at Cost			Equity
Balance at January 1, 2024		33,918,035		(3,549,380	)		30,368,655		$	34	$	586,912	$	(71,928	)	$	319,048		$	(132,175	)	$	701,891
Issuance of awards pursuant to equity incentive plans, net of forfeitures		206,875		—			206,875			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		1,735		—			—			—			1,735
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(33,420	)		(33,420	)		—		—		—			—			(518	)		(518	)
Repurchase of common stock		—		(270,000	)		(270,000	)		—		—		—			—			(4,321	)		(4,321	)
Cash dividends paid (common stock, $0.50/share)		—		—			—			—		—		—			(15,271	)		—			(15,271	)
Net income		—		—			—			—		—		—			29,615			—			29,615
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		(4,298	)		—			—			(4,298	)
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		(1,774	)		—			—			(1,774	)
Balance at June 30, 2024		34,124,910		(3,852,800	)		30,272,110		$	34	$	588,647	$	(78,000	)	$	333,392		$	(137,014	)	$	707,059

Balance at January 1, 2025		34,151,464		(3,955,465	)		30,195,999		$	34	$	591,069	$	(70,723	)	$	350,869		$	(139,075	)	$	732,174
Issuance of awards pursuant to equity incentive plans, net of forfeitures		142,573		—			142,573			—		—		—			—			—			—
Share-based compensation expense		—		—			—			—		1,756		—			—			—			1,756
Shares surrendered to satisfy tax liability upon vesting of equity awards		—		(42,004	)		(42,004	)		—		—		—			—			(938	)		(938	)
Repurchase of common stock		—		(120,000	)		(120,000	)		—		—		—			—			(2,752	)		(2,752	)
Cash dividends paid (common stock, $0.54/share)		—		—			—			—		—		—			(16,407	)		—			(16,407	)
Net income		—		—			—			—		—		—			32,789			—			32,789
Change in unrealized gain (loss) on securities available for sale, net of income taxes		—		—			—			—		—		15,892			—			—			15,892
Change in unrealized gain (loss) on cash flow hedge, net of income taxes		—		—			—			—		—		320			—			—			320
Balance at June 30, 2025		34,294,037		(4,117,469	)		30,176,568		$	34	$	592,825	$	(54,511	)	$	367,251		$	(142,765	)	$	762,834

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)


	Six Months Ended June 30,
	2025			2024
Cash flows from operating activities:
Net income	$	32,789		$	29,615
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,244			3,214
Amortization of servicing assets - net		1,372			1,366
Share-based compensation expense		1,756			1,735
Credit loss expense		10,352			1,188
(Gain) loss on sales of SBA loans		(4,161	)		(3,126	)
Origination of loans held for sale		(108,610	)		(47,595	)
Proceeds from sales of loans		80,730			51,070
(Gain) loss on sales of residential loans		(175	)		(808	)
Change in bank-owned life insurance		183			131
Change in prepaid expenses and other assets		(4,681	)		4,730
Change in income tax assets		(988	)		(4,087	)
Change in accrued interest payable and other liabilities		(4,958	)		(5,399	)
Net cash provided by operating activities		6,853			32,034
Cash flows from investing activities:
Purchases of securities available for sale		(101,004	)		(78,454	)
Proceeds from matured, called and repayment of securities		109,626			58,848
Purchases of loans receivable		(44,631	)		(24,656	)
Proceeds from sales of residential mortgage loans		—			50,352
Purchases of premises and equipment		(832	)		(1,563	)
Proceeds from disposition of premises and equipment		14			—
Proceeds from sales of other real estate owned ("OREO")		713			—
Change in loans receivable, excluding purchases and sales		(33,736	)		(21,956	)
Net cash used in investing activities		(69,850	)		(17,429	)
Cash flows from financing activities:
Change in deposits		293,346			48,765
Change in open FHLB advances		(135,000	)		(32,500	)
Cash paid for employee vested shares surrendered due to employee tax liability		(938	)		(518	)
Repurchase of common stock		(2,754	)		(4,326	)
Cash dividends paid		(16,407	)		(15,271	)
Net cash provided by (used in) financing activities		138,247			(3,850	)
Net increase in cash and due from banks		75,250			10,755
Cash and due from banks at beginning of year		304,800			302,324
Cash and due from banks at end of period	$	380,050		$	313,079
Supplemental disclosures of cash flow information:
Interest paid	$	92,615		$	90,586
Income taxes paid	$	13,590		$	22,365
Non-cash activities:
Transfer of fixed assets to other real estate owned		-		$	655
Income tax (expense) benefit related to other comprehensive income items	$	(6,484	)	$	2,796
Change in right-of-use asset obtained in exchange for lease liability	$	(3,814	)	$	(1,932	)

See Accompanying Notes to Consolidated Financial Statements (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Note 1 — Organization and Basis of Presentation

Hanmi Financial Corporation (“Hanmi Financial,” the “Company,” “we,” “us” or “our”) is a bank holding company whose primary subsidiary is Hanmi Bank (the “Bank”). Our primary operations are related to traditional banking activities, including the acceptance of deposits and the lending and investing of money by the Bank.

In management’s opinion, the accompanying unaudited consolidated financial statements of Hanmi Financial and its subsidiaries reflect all adjustments of a normal and recurring nature that are necessary for a fair presentation of the results for the interim period ended June 30, 2025. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. The unaudited consolidated financial statements are prepared in conformity with GAAP and in accordance with the instructions to Form 10-Q pursuant to the rules and regulations of the Securities and Exchange Commission. Operating results for the three or six-month periods ended June 30, 2025 are not necessarily indicative of the results that may be expected for the year ended December 31, 2025 or for any other period. The interim information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Annual Report on Form 10-K”).

The preparation of interim unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. These estimates and assumptions affect the amounts reported in the unaudited financial statements and disclosures provided, and actual results could differ.

Descriptions of our significant accounting policies are included in Note 1 - Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements in the 2024 Annual Report on Form 10-K.

Effective January 1, 2025, the Company changed its methodology for estimating expected credit losses on its loan portfolio in accordance with Accounting Standards Update ("ASU") 2016-23, Financial Instruments – Credit Losses. Prior to January 1, 2025, the Company primarily used a Probability of Default / Loss Given Default (PD/LGD) model to determine the allowance for credit losses. Following a periodic review of its credit loss estimation process, the Company concluded that a historical loss rate approach, adjusted for current conditions and reasonable and supportable forecasts, more appropriately reflected the expected credit losses for its loan portfolio. This change is considered a change in accounting estimate resulting from a change in methodology and assumptions and was accounted for prospectively in accordance with ASC 250-10-45-17 through 45-18.

The change in methodology had an immaterial impact to the Company’s operating results and financial condition. The provision for credit losses for the six months ended June 30, 2025 reflects this change in estimate. Management believes the revised approach enhances the accuracy and relevance of its allowance for credit losses by aligning the methodology more closely with the Company’s historical experience, the nature of its loan portfolio, and expectations for future economic conditions.

Accounting Standards Adopted in 2025

Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures: In December 2023, the FASB issued ASU 2023-09 to enhance the transparency and usefulness of income tax disclosures primarily related to income tax rate reconciliation and income tax information. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024. The adoption of ASU 2023-09 did not have a material effect on the Company’s operating results or financial condition.

Recently Issued Accounting Standards Not Yet Effective

ASU 2024-03, Income Statement Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40), as amended by ASU 2025-01, Clarifying the Effective Date: In November 2024, the Financial Accounting Standards Board (“FASB”) issued ASU 2024-03 to require additional information about specific expense categories in the financial statement notes at interim and annual reporting periods. The amendments in this ASU do not change or remove current expense disclosure requirements. The amendments affect where the information appears in the financial statement notes. ASU 2025-01 amends the changes in ASU 2024-03 to be effective for fiscal years beginning after December 15, 2026. The adoption of ASU 2024-03 is not expected to have a material effect on the Company’s operating results or financial condition.

Note 2 — Securities

The following is a summary of securities available for sale as of the dates indicated:


			Gross		Gross			Estimated
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gain		Loss			Value
	(in thousands)
June 30, 2025
U.S. Treasury securities	$	119,908	$	236	$	(323	)	$	119,821
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		434,588		549		(47,105	)		388,032
Mortgage-backed securities - commercial		73,295		85		(12,030	)		61,350
Collateralized mortgage obligations		203,969		1,861		(7,176	)		198,654
Debt securities		87,287		6		(2,133	)		85,160
Total U.S. government agency and sponsored agency obligations		799,139		2,501		(68,444	)		733,196
Municipal bonds-tax exempt		75,564		—		(10,487	)		65,077
Total securities available for sale	$	994,611	$	2,737	$	(79,254	)	$	918,094

December 31, 2024
U.S. Treasury securities	$	89,208	$	242	$	(521	)	$	88,929
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		453,993		222		(61,643	)		392,572
Mortgage-backed securities - commercial		75,947		24		(13,055	)		62,916
Collateralized mortgage obligations		182,553		404		(9,401	)		173,556
Debt securities		126,776		9		(3,969	)		122,816
Total U.S. government agency and sponsored agency obligations		839,269		659		(88,068	)		751,860
Municipal bonds-tax exempt		76,086		—		(11,077	)		65,009
Total securities available for sale	$	1,004,563	$	901	$	(99,666	)	$	905,798

The amortized cost and estimated fair value of securities as of June 30, 2025 and December 31, 2024, by contractual or expected maturity, are shown below. Collateralized mortgage obligations are included in the table shown below based on their expected maturities. All other securities are included based on their contractual maturities.


	June 30, 2025				December 31, 2024
	Available for Sale				Available for Sale
	Amortized		Estimated		Amortized		Estimated
	Cost		Fair Value		Cost		Fair Value
	(in thousands)
Within one year	$	121,820	$	121,099	$	93,251	$	92,646
Over one year through five years		106,462		104,431		133,408		129,556
Over five years through ten years		134,725		121,037		90,772		81,833
Over ten years		631,604		571,527		687,132		601,763
Total	$	994,611	$	918,094	$	1,004,563	$	905,798

The following table summarizes debt securities available for sale in an unrealized loss position for which an allowance for credit losses has not been recorded at June 30, 2025 or December 31, 2024, aggregated by major security type and length of time in a continuous unrealized loss position:


	Holding Period
	Less than 12 Months							12 Months or More							Total
	Gross			Estimated		Number		Gross			Estimated		Number		Gross			Estimated		Number
	Unrealized			Fair		of		Unrealized			Fair		of		Unrealized			Fair		of
	Loss			Value		Securities		Loss			Value		Securities		Loss			Value		Securities
	(in thousands, except number of securities)
June 30, 2025
U.S. Treasury securities	$	(28	)	$	27,020		7	$	(295	)	$	8,193		2	$	(323	)	$	35,213		9
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(179	)		19,577		7		(46,926	)		338,997		113		(47,105	)		358,574		120
Mortgage-backed securities - commercial		(309	)		14,631		4		(11,721	)		40,470		12		(12,030	)		55,101		16
Collateralized mortgage obligations		(31	)		5,541		2		(7,145	)		50,234		23		(7,176	)		55,775		25
Debt securities		—			—		—		(2,133	)		69,919		14		(2,133	)		69,919		14
Total U.S. government agency and sponsored agency obligations		(519	)		39,749		13		(67,925	)		499,620		162		(68,444	)		539,369		175
Municipal bonds-tax exempt		—			—		—		(10,487	)		65,077		19		(10,487	)		65,077		19
Total	$	(547	)	$	66,769		20	$	(78,707	)	$	572,890		183	$	(79,254	)	$	639,659		203

December 31, 2024
U.S. Treasury securities	$	(61	)	$	13,603		6	$	(460	)	$	9,771		3	$	(521	)	$	23,374		9
U.S. government agency and sponsored agency obligations:
Mortgage-backed securities - residential		(271	)		23,276		10		(61,372	)		351,793		114		(61,643	)		375,069		124
Mortgage-backed securities - commercial		(447	)		19,092		5		(12,608	)		41,817		14		(13,055	)		60,909		19
Collateralized mortgage obligations		(645	)		76,963		18		(8,756	)		54,020		24		(9,401	)		130,983		42
Debt securities		(23	)		11,712		3		(3,946	)		107,595		21		(3,969	)		119,307		24
Total U.S. government agency and sponsored agency obligations		(1,386	)		131,043		36		(86,682	)		555,225		173		(88,068	)		686,268		209
Municipal bonds-tax exempt		—			—		—		(11,077	)		65,009		19		(11,077	)		65,009		19
Total	$	(1,447	)	$	144,646		42	$	(98,219	)	$	630,005		195	$	(99,666	)	$	774,651		237

The Company evaluates its available for sale securities portfolio for impairment on a quarterly basis. The Company did not recognize unrealized losses in income because it has the ability and the intent to hold and does not expect to be required to sell these securities until the recovery of their cost basis. The quarterly impairment assessment considers the changes in the credit quality of these debt securities since acquisition and the likelihood of a credit loss occurring over the life of the securities. If a credit loss is expected to occur, an allowance is established and a corresponding credit loss is recognized. Based on its analysis, as of June 30, 2025, the Company determined that no credit losses were expected to be realized on the tax-exempt municipal bond portfolio. The remainder of the portfolio consists of U.S. Treasury obligations, U.S. government agency securities, and U.S. government sponsored agency securities, all of which have the backing of the U.S. government, and are therefore not expected to incur credit losses.

There were no sales of securities during the six months ended June 30, 2025 or June 30, 2024.

Securities available for sale with market values of $27.9 million and $29.4 million as of June 30, 2025 and December 31, 2024, respectively, were pledged to secure borrowings from the Federal Reserve Bank (“FRB”) Discount Window.

At June 30, 2025, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders’ equity.

Note 3 — Loans

Loans Receivable

Loans consisted of the following as of the dates indicated:


	June 30, 2025			December 31, 2024
	(in thousands)
Real estate loans:
Commercial property
Retail	$	1,116,540		$	1,068,978
Hospitality		822,021			848,134
Office		556,453			568,861
Other (1)		1,373,836			1,385,051
Total commercial property loans		3,868,850			3,871,024
Construction		80,072			78,598
Residential (2)		993,869			951,302
Total real estate loans		4,942,791			4,900,924
Commercial and industrial loans		917,995			863,431
Equipment financing agreements		445,171			487,022
Loans receivable		6,305,957			6,251,377
Allowance for credit losses		(66,756	)		(70,147	)
Loans receivable, net	$	6,239,201		$	6,181,230

(1)

Includes mixed-use, multifamily, industrial, gas stations, faith-based facilities, and medical; all other property types represent less than one percent of total loans receivable.

(2)

Includes $8.3 million and $1.3 million of home equity loans and lines, and $7.1 million and $4.1 million of personal loans at June 30, 2025 and December 31, 2024, respectively.

Accrued interest on loans was $19.8 million and $19.1 million at June 30, 2025 and December 31, 2024, respectively.

At June 30, 2025 and December 31, 2024, loans with carrying values of $2.40 billion and $2.46 billion, respectively, were pledged to secure advances from the FHLB.

Loans Held for Sale

The following is the activity for loans held for sale for the following periods:


	Real Estate			Commercial and Industrial			Total
	(in thousands)
Three months ended June 30, 2025
Balance at beginning of period	$	5,015		$	6,816		$	11,831
Originations and transfers		56,000			17,190			73,190
Sales		(15,601	)		(19,787	)		(35,388	)
Principal paydowns and amortization		(2	)		(20	)		(22	)
Balance at end of period	$	45,412		$	4,199		$	49,611

Three months ended June 30, 2024
Balance at beginning of period	$	1,454		$	2,545		$	3,999
Originations and transfers		20,572			9,391			29,963
Sales		(14,877	)		(8,613	)		(23,490	)
Principal paydowns and amortization		—			(5	)		(5	)
Balance at end of period	$	7,149		$	3,318		$	10,467


	Real Estate			Commercial and Industrial			Total
	(in thousands)
Six months ended June 30, 2025
Balance at beginning of period	$	3,994		$	4,585		$	8,579
Originations and transfers		74,615			33,995			108,610
Sales		(33,195	)		(34,358	)		(67,553	)
Principal payoffs and amortization		(2	)		(23	)		(25	)
Balance at end of period	$	45,412		$	4,199		$	49,611

Six months ended June 30, 2024
Balance at beginning of period	$	8,792		$	3,221		$	12,013
Originations and transfers		30,186			17,409			47,595
Sales		(31,775	)		(17,301	)		(49,076	)
Principal payoffs and amortization		(54	)		(11	)		(65	)
Balance at end of period	$	7,149		$	3,318		$	10,467

The following table presents loans purchased by portfolio segment for the following periods:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2025		2024		2025		2024
	(in thousands)				(in thousands)
Commercial real estate	$	—	$	6,060	$	15,113	$	6,334
Commercial and industrial		—		8,398		9,203		18,322
Residential real estate		10,330		5,178		20,315		5,178
Total	$	10,330	$	19,636	$	44,631	$	29,834

Allowance for Credit Losses

Effective January 1, 2025, we transitioned to a new allowance for credit losses (“ACL”) model to perform our ACL analysis. Part of the transition to the new model, in addition to the factors previously mentioned, includes a change in our methodology on commercial and industrial, commercial real estate, and residential loans. The change in models did not result in a material change in our ACL as of January 1, 2025. The table below includes in credit loss expense for the six months ended June 30, 2025 the effect of the ACL model change of $1.4 million.

The following table details the information on the allowance for credit losses by portfolio segment for the following periods:


	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
Three months ended June 30, 2025
Balance at beginning of period	$	51,302		$	6,242		$	13,053		$	70,597
Charge-offs		(8,615	)		(811	)		(2,951	)		(12,377	)
Recoveries		194			198			621			1,013
Credit loss expense		5,140			1,306			1,077			7,523
Ending balance	$	48,021		$	6,935		$	11,800		$	66,756

Three months ended June 30, 2024
Balance at beginning of period	$	42,584		$	11,836		$	13,850		$	68,270
Charge-offs		(93	)		(93	)		(2,152	)		(2,338	)
Recoveries		64			166			318			548
Credit loss expense (recovery)		(403	)		(1,346	)		2,998			1,249
Ending balance	$	42,152		$	10,563		$	15,014		$	67,729


	Real Estate			Commercial and Industrial			Equipment Financing Agreements			Total
	(in thousands)
Six months ended June 30, 2025
Balance at beginning of period	$	45,099		$	10,006		$	15,042		$	70,147
Charge-offs		(8,785	)		(1,033	)		(5,749	)		(15,567	)
Recoveries		618			234			1,404			2,256
Credit loss expense (recovery)		11,089			(2,272	)		1,103			9,920
Ending balance	$	48,021		$	6,935		$	11,800		$	66,756

Six months ended June 30, 2024
Balance at beginning of period	$	45,499		$	10,257		$	13,706		$	69,462
Charge-offs		(93	)		(248	)		(4,120	)		(4,461	)
Recoveries		111			224			741			1,076
Credit loss expense (recovery)		(3,365	)		330			4,687			1,652
Ending balance	$	42,152		$	10,563		$	15,014		$	67,729

The table below presents the allowance for credit losses by portfolio segment as a percentage of the total allowance for credit losses and loans by portfolio segment as a percentage of the aggregate investment of loans receivable as of:


	June 30, 2025										December 31, 2024
	Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans			Allowance Amount		Percentage of Total Allowance			Total Loans		Percentage of Total Loans
	(dollars in thousands)
Real estate loans:
Commercial property
Retail	$	9,886		14.8	%	$	1,116,540		17.7	%	$	10,171		14.5	%	$	1,068,978		17.1	%
Hospitality		7,579		11.3			822,021		13.1			15,302		21.8			848,134		13.6
Office		5,603		8.4			556,453		8.8			3,935		5.6			568,861		9.1
Other		13,268		19.9			1,373,836		21.8			8,243		11.8			1,385,051		22.2
Total commercial property loans		36,336		54.4			3,868,850		61.4			37,651		53.7			3,871,024		62.0
Construction		1,107		1.7			80,072		1.3			1,664		2.4			78,598		1.3
Residential		10,578		15.8			993,869		15.8			5,784		8.2			951,302		15.2
Total real estate loans		48,021		71.9			4,942,791		78.5			45,099		64.3			4,900,924		78.5
Commercial and industrial loans		6,935		10.4			917,995		14.5			10,006		14.3			863,431		13.8
Equipment financing agreements		11,800		17.7			445,171		7.0			15,042		21.4			487,022		7.7
Total	$	66,756		100.0	%	$	6,305,957		100.0	%	$	70,147		100.0	%	$	6,251,377		100.0	%

The following table represents the amortized cost basis of collateral-dependent loans by class of loans, for which repayment is expected to be obtained through the sale of the underlying collateral, as of:


	June 30, 2025		December 31, 2024
	(in thousands)
Real estate loans:
Commercial property
Retail	$	874	$	1,377
Hospitality		2,514		215
Office		10,990		—
Total commercial property loans		14,378		1,592
Residential		3,997		1,875
Total real estate loans		18,375		3,467
Total	$	18,375	$	3,499

Loan Quality Indicators

As part of the on-going monitoring of the quality of our loans portfolio, we utilize an internal loan grading system to identify credit risk and assign an appropriate grade (from 1 to 8) for each loan in our portfolio. Third-party loan reviews are conducted annually on a sample basis. Additional adjustments are made when determined to be necessary. The loan grade definitions are as follows:

Pass and Pass-Watch: Pass and Pass-Watch loans, grades (1-4), are in compliance with the Bank’s credit policy and regulatory requirements, and do not exhibit any potential or defined weaknesses as defined under “Special Mention”, “Substandard” or “Doubtful.” This category is the strongest level of the Bank’s loan grading system. It consists of all performing loans with no identified credit weaknesses. It includes cash and stock/security secured loans or other investment grade loans.

Special Mention: A Special Mention loan, grade (5), has potential weaknesses that deserve management’s close attention. If not corrected, these potential weaknesses may result in deterioration of the repayment of the debt and result in a Substandard classification. Loans that have significant actual, not potential, weaknesses are considered more severely classified.

Substandard: A Substandard loan, grade (6), has a well-defined weakness that jeopardizes the liquidation of the debt. A loan graded Substandard is not protected by the sound worth and paying capacity of the borrower, or of the value and type of collateral pledged. With a Substandard loan, there is a distinct possibility that the Bank will sustain some loss if the weaknesses or deficiencies are not corrected.

Doubtful: A Doubtful loan, grade (7), is one that has critical weaknesses that would make the collection or liquidation of the full amount due improbable. However, there may be pending events which may work to strengthen the loan, and therefore the amount or timing of a possible loss cannot be determined at the current time.

Loss: A loan classified as Loss, grade (8), is considered uncollectible and of such little value that their continuance as active bank assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this asset even though partial recovery may be possible in the future. Loans classified as Loss will be charged off in a timely manner.

Under regulatory guidance, loans graded special mention or worse are considered criticized loans, and loans graded substandard or worse are considered classified loans.

Loans by Vintage Year and Risk Rating


	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2025			2024			2023			2022		2021		Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
June 30, 2025
Real estate loans:
Commercial property
Risk Rating										`
Pass / Pass-Watch	$	572,829		$	425,598		$	519,482		$	883,296	$	762,889	$	592,258		$	87,965		$	3,844,317
Special Mention		—			—			—			148		—		301			—			449
Classified		834			678			—			12,534		3,089		6,949			—			24,084
Total commercial property		573,663			426,276			519,482			895,978		765,978		599,508			87,965			3,868,850
YTD gross charge-offs		—			—			—			8,585		—		200			—			8,785
YTD net charge-offs (recoveries)		(3	)		—			—			8,311		—		(139	)		—			8,169

Construction
Risk Rating
Pass / Pass-Watch		19,071			53,002			7,999			—		—		—			—			80,072
Special Mention		—			—			—			—		—		—			—			—
Classified		—			—			—			—		—		—			—			—
Total construction		19,071			53,002			7,999			—		—		—			—			80,072
YTD gross charge-offs		—			—			—			—		—		—			—			—
YTD net charge-offs (recoveries)		—			—			—			—		—		—			—			—

Residential
Risk Rating
Pass / Pass-Watch		128,556			97,446			167,830			343,344		137,640		109,026			7,562			991,404
Special Mention		—			—			—			—		—		—			250			250
Classified		—			—			—			946		—		1,269			—			2,215
Total residential		128,556			97,446			167,830			344,290		137,640		110,295			7,812			993,869
YTD gross charge-offs		—			—			—			—		—		—			—			—
YTD net charge-offs (recoveries)		—			—			—			—		—		(2	)		—			(2	)

Total real estate loans
Risk Rating
Pass / Pass-Watch		720,456			576,046			695,311			1,226,640		900,529		701,284			95,527			4,915,793
Special Mention		—			—			—			148		—		301			250			699
Classified		834			678			—			13,480		3,089		8,218			—			26,299
Total real estate loans		721,290			576,724			695,311			1,240,268		903,618		709,803			95,777			4,942,791
YTD gross charge-offs		—			—			—			8,585		—		200			—			8,785
YTD net charge-offs (recoveries)		(3	)		—			—			8,311		—		(141	)		—			8,167

Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		216,947			194,113			45,908			68,389		27,439		20,422			332,135			905,353
Special Mention		—			—			—			12,001		—		—			—			12,001
Classified		—			(2	)		—			110		82		47			404			641
Total commercial and industrial loans		216,947			194,111			45,908			80,500		27,521		20,469			332,539			917,995
YTD gross charge-offs		—			373			—			362		—		298			—			1,033
YTD net charge-offs (recoveries)		—			373			(5	)		346		—		85			—			799

Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		77,045			113,036			114,946			94,254		34,222		4,751			—			438,254
Special Mention		—			—			—			—		—		—			—			—
Classified		—			493			1,442			3,693		1,089		200			—			6,917
Total equipment financing agreements		77,045			113,529			116,388			97,947		35,311		4,951			—			445,171
YTD gross charge-offs		—			258			1,826			2,453		1,081		131			—			5,749
YTD net charge-offs (recoveries)		—			229			1,634			1,924		600		(40	)		(2	)		4,345

Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,014,448			883,195			856,165			1,389,283		962,190		726,457			427,662			6,259,400
Special Mention		—			—			—			12,149		—		301			250			12,700
Classified		834			1,169			1,442			17,283		4,260		8,465			404			33,857
Total loans receivable	$	1,015,282		$	884,364		$	857,607		$	1,418,715	$	966,450	$	735,223		$	428,316		$	6,305,957
YTD gross charge-offs		—			631			1,826			11,400		1,081		629			—			15,567
YTD net charge-offs (recoveries)		(3	)		602			1,629			10,581		600		(96	)		(2	)		13,311

(1)

Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.


	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2024		2023			2022		2021			2020			Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
December 31, 2024
Real estate loans:
Commercial property
Risk Rating
Pass / Pass-Watch	$	533,989	$	558,271		$	930,190	$	800,938		$	553,490		$	271,209		$	101,277		$	3,749,364
Special Mention		29,935		—			1,009		—			—			76,524			—			107,468
Classified		541		—			5,658		3,151			72			4,770			—			14,192
Total commercial property		564,465		558,271			936,857		804,089			553,562			352,503			101,277			3,871,024
YTD gross charge-offs		—		—			274		—			—			136			—			410
YTD net charge-offs (recoveries)		—		—			274		—			(21	)		(704	)		—			(451	)

Construction
Risk Rating
Pass / Pass-Watch		70,601		7,997			—		—			—			—			—			78,598
Special Mention		—		—			—		—			—			—			—			—
Classified		—		—			—		—			—			—			—			—
Total construction		70,601		7,997			—		—			—			—			—			78,598
YTD gross charge-offs		—		—			—		—			1,133			—			—			1,133
YTD net charge-offs (recoveries)		—		—			—		—			1,132			(1,358	)		—			(226	)

Residential
Risk Rating
Pass / Pass-Watch		127,986		200,316			355,134		145,310			11,164			105,406			4,436			949,752
Special Mention		—		—			—		—			—			—			251			251
Classified		—		—			983		—			316			—			—			1,299
Total residential		127,986		200,316			356,117		145,310			11,480			105,406			4,687			951,302
YTD gross charge-offs		—		—			—		—			—			—			—			—
YTD net charge-offs (recoveries)		—		—			—		—			—			(3	)		—			(3	)

Total real estate loans
Risk Rating
Pass / Pass-Watch		732,576		766,584			1,285,324		946,248			564,654			376,615			105,713			4,777,714
Special Mention		29,935		—			1,009		—			—			76,524			251			107,719
Classified		541		—			6,641		3,151			388			4,770			—			15,491
Total real estate loans		763,052		766,584			1,292,974		949,399			565,042			457,909			105,964			4,900,924
YTD gross charge-offs		—		—			274		—			1,133			136			—			1,543
YTD net charge-offs (recoveries)		—		—			274		—			1,111			(2,065	)		—			(680	)

Commercial and industrial loans:
Risk Rating
Pass / Pass-Watch		271,655		59,453			94,385		32,226			12,761			13,360			346,001			829,841
Special Mention		19,473		—			12,401		—			—			20			—			31,894
Classified		—		(5	)		196		102			—			215			1,188			1,696
Total commercial and industrial loans		291,128		59,448			106,982		32,328			12,761			13,595			347,189			863,431
YTD gross charge-offs		19		169			168		—			11			207			2			576
YTD net charge-offs (recoveries)		19		169			160		(13	)		11			123			(3,375	)		(2,906	)

Equipment financing agreements:
Risk Rating
Pass / Pass-Watch		140,143		144,617			129,764		52,354			8,085			3,563			—			478,526
Special Mention		—		—			—		—			—			—			—			—
Classified		431		1,945			3,851		1,934			129			206			—			8,496
Total equipment financing agreements		140,574		146,562			133,615		54,288			8,214			3,769			—			487,022
YTD gross charge-offs		30		1,456			5,128		2,206			354			325			—			9,499
YTD net charge-offs (recoveries)		30		1,299			4,488		1,826			287			(211	)		—			7,719

Total loans receivable:
Risk Rating
Pass / Pass-Watch		1,144,374		970,654			1,509,473		1,030,828			585,500			393,538			451,714			6,086,081
Special Mention		49,408		—			13,410		—			—			76,544			251			139,613
Classified		972		1,940			10,688		5,187			517			5,191			1,188			25,683
Total loans receivable	$	1,194,754	$	972,594		$	1,533,571	$	1,036,015		$	586,017		$	475,273		$	453,153		$	6,251,377
YTD gross charge-offs		49		1,625			5,570		2,206			1,498			668			2			11,618
YTD net charge-offs (recoveries)		49		1,468			4,922		1,813			1,409			(2,153	)		(3,375	)		4,133

(1)

Includes extensions, renewals, or modifications of credit contracts, which consist of a new credit decision.

Loans by Vintage Year and Payment Performance


	Term Loans
	Amortized Cost Basis by Origination Year (1)
	2025			2024			2023			2022		2021		Prior			Revolving Loans Amortized Cost Basis			Total
	(in thousands)
June 30, 2025
Real estate loans:
Commercial property
Payment performance
Performing	$	573,663		$	425,956		$	519,482		$	884,371	$	765,978	$	596,574		$	87,965		$	3,853,989
Nonperforming		—			320			—			11,607		—		2,934			—			14,861
Total commercial property		573,663			426,276			519,482			895,978		765,978		599,508			87,965			3,868,850
YTD gross charge-offs		—			—			—			8,585		—		200			—			8,785
YTD net charge-offs (recoveries)		(3	)		—			—			8,311		—		(139	)		—			8,169

Construction
Payment performance
Performing		19,071			53,002			7,999			—		—		—			—			80,072
Nonperforming		—			—			—			—		—		—			—			—
Total construction		19,071			53,002			7,999			—		—		—			—			80,072
YTD gross charge-offs		—			—			—			—		—		—			—			—
YTD net charge-offs (recoveries)		—			—			—			—		—		—			—			—

Residential
Payment performance
Performing		128,556			97,446			167,830			341,566		137,640		109,026			7,812			989,876
Nonperforming		—			—			—			2,724		—		1,269			—			3,993
Total residential		128,556			97,446			167,830			344,290		137,640		110,295			7,812			993,869
YTD gross charge-offs		—			—			—			—		—		—			—			—
YTD net charge-offs (recoveries)		—			—			—			—		—		(2	)		—			(2	)

Total real estate loans
Payment performance
Performing		721,290			576,404			695,311			1,225,937		903,618		705,600			95,777			4,923,937
Nonperforming		—			320			—			14,331		—		4,203			—			18,854
Total real estate loans		721,290			576,724			695,311			1,240,268		903,618		709,803			95,777			4,942,791
YTD gross charge-offs		—			—			—			8,585		—		200			—			8,785
YTD net charge-offs (recoveries)		(3	)		—			—			8,311		—		(141	)		—			8,167

Commercial and industrial loans:
Payment performance
Performing		216,947			194,113			45,908			80,390		27,521		20,447			332,539			917,865
Nonperforming		—			(2	)		—			110		—		22			—			130
Total commercial and industrial loans		216,947			194,111			45,908			80,500		27,521		20,469			332,539			917,995
YTD gross charge-offs		—			373			—			362		—		298			—			1,033
YTD net charge-offs (recoveries)		—			373			(5	)		346		—		85			—			799

Equipment financing agreements:
Payment performance
Performing		77,045			113,036			114,946			94,188		34,222		4,751			—			438,188
Nonperforming		—			493			1,442			3,759		1,089		200			—			6,983
Total equipment financing agreements		77,045			113,529			116,388			97,947		35,311		4,951			—			445,171
YTD gross charge-offs		—			258			1,826			2,453		1,081		131			—			5,749
YTD net charge-offs (recoveries)		—			229			1,634			1,924		600		(40	)		(2	)		4,345

Total loans receivable:
Payment performance
Performing		1,015,282			883,553			856,165			1,400,515		965,361		730,798			428,316			6,279,990
Nonperforming		—			811			1,442			18,200		1,089		4,425			—			25,967
Total loans receivable	$	1,015,282		$	884,364		$	857,607		$	1,418,715	$	966,450	$	735,223		$	428,316		$	6,305,957
YTD gross charge-offs		—			631			1,826			11,400		1,081		629

For the Quarterly Period Ended June 30, 2025

or

For the Transition Period From To

Commission File Number: 000-30421

(Exact Name of Registrant as Specified in its Charter)

Delaware

95-4788120

(State or Other Jurisdiction of

(I.R.S. Employer

Incorporation or Organization)

Identification No.)

900 Wilshire Boulevard, Suite 1250

Los Angeles, California

90017

(Address of Principal Executive Offices)

(Zip Code)

(213) 382-2200

Not Applicable

Part I — Financial Information

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Three Months Ended June 30, 2025 and 2024

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

For the Six Months Ended June 30, 2025 and 2024

Hanmi Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

Hanmi Financial Corporation and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

Accounting Standards Adopted in 2025

Recently Issued Accounting Standards Not Yet Effective

Note 2 — Securities

Note 3 — Loans

Loans Receivable

Loans Held for Sale